The mobile wallet service PayTm has posted a huge loss of Rs 4,217 crore for the financial year 2018-19 that ended on March 31st. For the previous financial year, PayTm posted Rs 1,604.34 crore losses and when compared to this year’s loss, it almost tripled (162%) and on an average, PayTm is reporting a loss of Rs 11 crore per day.
The Noida-based company’s total revenue rose to Rs 3,579.67 crore in FY19 against Rs 3,309 crore but it is the expenses that got doubled to Rs 7,730.14 crore in the year and resulted in huge losses. The likes Google-Pay, Phone Pe and other mobile wallets are also hurting PayTm’s business. Another service called Paytm Money too reported a net loss of Rs 36.8 crore.
Nevertheless, an internal survey by an investment bank reveals that PayTm will enter profits in the year 2021 and in the next five years i.e, by 2026, PayTm will be leading a force in mobile wallet payments. The focus is more on payments bank, insurance, travel ticketing, hotel and other mobile wallet services as PayTm believe it could generate good revenues in the coming years. Accordingly PayTm is planning to invest $3 billion in the next two years and hopes to turnaround the fortunes of the company. One97 Communications Ltd is the parent of PayTm.
It’s the automobile sector that is badly hit and like never before in the last two decades, the sales of two and four wheeler have come down and when the recession is in the corner, PayTm which made a big name post 2016 demonetisation, too incurred huge losses which is a cause of concern.
